Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 3.8% - Here's Why

Key Points

• Advanced Micro Devices shares fell about 3.8% intraday to roughly $334.50 from a prior close of $347.81, with trading volume up ~30% to about 50.2 million shares.
• The pullback reflects mixed catalysts — bullish momentum, data‑center CPU upside and some analyst upgrades versus negative headlines including a Northland downgrade to Market Perform (target $260), other sell‑side neutrals and reports that ARK trimmed its AMD holding.
• AMD recently reported a strong earnings beat (EPS $1.53 vs $1.32; revenue $10.27B, +34% YoY), but valuation is high (P/E ~126) and the MarketBeat consensus price target (~$295.46) remains below the current share price.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price fell 3.8% during mid-day trading on Monday . The stock traded as low as $328.81 and last traded at $334.5050. 50,210,530 shares changed hands during trading, an increase of 30% from the average session volume of 38,494,035 shares. The stock had previously closed at $347.81.

Key Advanced Micro Devices News

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: Data-center dynamics could tilt in AMD’s favor — several analysts argue a sudden CPU shortage (not just GPU demand) would lift EPYC/Instinct server wins and accelerate revenue upside for AMD. Forget Nvidia: Sudden CPU Shortage Can Make AMD Explode Higher
• Positive Sentiment: Momentum and estimate revisions: AMD posted a strong volume surge and a near-term analyst upgrade/earnings-estimate trend that could leave room for more upside after the recent spike. Advanced Micro (AMD) Soars 13.9%: Is Further Upside Left in the Stock?
• Positive Sentiment: High-profile bullish commentary (e.g., Jim Cramer and other bullish write-ups) is keeping retail and momentum flows engaged in the name. Jim Cramer Shares Why You Should Buy Advanced Micro Devices (AMD)
• Neutral Sentiment: Customer adoption note — HostColor launched 10 Gbps dedicated servers powered by AMD Ryzen/EPYC in Hong Kong data centers; a small operational win but limited near-term revenue impact. HostColor Announced 10 Gbps AMD Dedicated Servers in Hong Kong Data Centers
• Neutral Sentiment: Strategic moves like compute-for-equity programs can look dilutive on paper but are argued to be long-term share-builders; the market reaction can be muted/gradual. AMD: Compute-For-Equity Looks Dilutive, But It's Actually A Strategic Masterstroke
• Negative Sentiment: Analyst downgrade: Northland cut AMD to Market Perform with a $260 price target, citing concerns that the chip rally may be overstretched — this headline is a clear near-term negative catalyst. Northland Downgrades AMD to Market Perform: Is the Chip Rally Running on Fumes?
• Negative Sentiment: Citi and other sell-side actions: Citi maintained a Hold/neutral stance and a sub-current-price target, and another top analyst removed AMD from a 30‑day positive catalyst watch — reducing short-term buy-side pressure. AMD Stock Slides as a Top Analyst Drops the Shares from a Positive Catalyst Watch
• Negative Sentiment: Large active funds are rebalancing: reports that ARK trimmed AMD in favor of other names signal institutional profit-taking that can amplify intraday weakness after a steep rally. Cathie Wood's ARK Offloads Red-Hot AMD Stock—and Buys Amazon in Strategy Shift

Analysts Set New Price Targets

Several research firms recently issued reports on AMD. Mizuho lifted their price target on shares of Advanced Micro Devices from $275.00 to $280.00 and gave the stock an "outperform" rating in a research note on Wednesday, February 25th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $230.00 price target on shares of Advanced Micro Devices in a research note on Monday, March 16th. Truist Financial set a $283.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, February 4th. Morgan Stanley dropped their target price on shares of Advanced Micro Devices from $260.00 to $255.00 and set an "equal weight" rating for the company in a research report on Wednesday, February 4th. Finally, UBS Group set a $310.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, February 4th. One analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $295.46.

Advanced Micro Devices Price Performance

The company's 50-day moving average price is $221.80 and its two-hundred day moving average price is $225.10. The company has a market cap of $545.36 billion, a P/E ratio of 126.23, a P/E/G ratio of 1.26 and a beta of 1.96. The company has a current ratio of 2.85, a quick ratio of 2.01 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, February 3rd. The semiconductor manufacturer reported $1.53 earnings per share for the quarter, topping the consensus estimate of $1.32 by $0.21. The company had revenue of $10.27 billion during the quarter, compared to the consensus estimate of $9.65 billion. Advanced Micro Devices had a net margin of 12.52% and a return on equity of 8.84%. The company's revenue was up 34.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.09 EPS. As a group, sell-side analysts expect that Advanced Micro Devices, Inc. will post 5.78 earnings per share for the current year.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Forrest Eugene Norrod sold 19,450 shares of the business's stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $216.81, for a total transaction of $4,216,954.50. Following the completion of the sale, the executive vice president owned 289,098 shares of the company's stock, valued at $62,679,337.38. This represents a 6.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Lisa T. Su sold 85,000 shares of the business's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $198.77, for a total transaction of $16,895,450.00. Following the sale, the chief executive officer directly owned 3,146,006 shares of the company's stock, valued at approximately $625,331,612.62. This represents a 2.63% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 273,352 shares of company stock worth $59,173,070 in the last quarter. 0.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Institutional investors have recently modified their holdings of the business. Joseph Group Capital Management bought a new stake in shares of Advanced Micro Devices during the 4th quarter valued at about $25,000. ORG Wealth Partners LLC grew its position in shares of Advanced Micro Devices by 39.7% during the 3rd quarter. ORG Wealth Partners LLC now owns 162 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 46 shares during the last quarter. Koesten Hirschmann & Crabtree INC. grew its position in shares of Advanced Micro Devices by 61.0% during the 3rd quarter. Koesten Hirschmann & Crabtree INC. now owns 161 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 61 shares during the last quarter. Sarver Vrooman Wealth Advisors acquired a new position in Advanced Micro Devices during the 4th quarter valued at about $27,000. Finally, Cornerstone Financial Management LLC acquired a new position in Advanced Micro Devices during the 4th quarter valued at about $27,000. Institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

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